APAC retail leasing closes 2025 with improved market sentiment

Tenant enquiries and site inspections were upbeat in Q4 2025.

Retail leasing sentiment across the Asia Pacific region improved in the final quarter of 2025, with stronger tenant enquiries and site inspections reported across most markets, according to CBRE’s latest Asia Pacific Leasing Market Sentiment Index.

The report is based on a survey of 522 leasing market professionals conducted between November 12 and 24, 2025, and reflects growing confidence among occupiers and landlords, even as negotiating power diverges by market.

CBRE’s findings show that retail tenant enquiries and site inspections were upbeat in Q4 2025, with most markets recording an increase compared with the previous quarter. Singapore emerged as the strongest performer, supported by the hosting of several large-scale events and solid retail sales growth, which helped lift retailer confidence.

While retail leasing activity strengthened, rental expectations remained largely unchanged from Q3 2025. Most markets anticipate modest rental growth, although mainland China stands out, where rents are expected to decline as landlords prioritise occupancy amid softer demand.

The report highlights that upcoming supply and prime availability are key factors shaping negotiating power across the region. Landlords in Japan, Korea and Australia are benefiting from limited prime space availability, placing them in a stronger negotiating position. In contrast, mainland China landlords face increased pressure as new supply continues to come on stream.

India remains a landlord-favourable market overall, but CBRE notes rising concerns around retailers’ ability to sustain current rent levels, reflecting affordability pressures despite healthy demand.

Survey results show that the frequency of tenant enquiries remained high, with nearly half of respondents in December 2025 describing enquiry levels as frequent. Site inspections also remained robust, though a larger share of respondents reported conditions as “normal” rather than “frequent”, suggesting a more measured pace of decision-making.

On pricing dynamics, sentiment around rents and incentives remained relatively stable. A majority of respondents said rents were unchanged compared with a month earlier, while a smaller but growing proportion reported increases. Incentives were more mixed, with a notable share of respondents indicating that incentives had either stabilised or declined, reflecting landlords’ improving leverage in select markets.

Negotiating power, however, has become more evenly balanced. In December 2025, 40% of respondents said lease negotiations were landlord-favoured, down from September, while 39% described negotiations as tenant-favoured, up from the prior quarter. The proportion viewing negotiations as neutral also edged higher, underscoring a more nuanced and market-specific leasing environment.